SBF supports halt to mandatory monthly contribution to HRDF
KUCHING: The Sarawak Business Federation ( SBF) is supportive of the recent proposal by the Malaysian Employers Federation ( MEF) to halt the mandatory monthly contribution to the Human Resource Development Fund ( HRDF).
SBF secretary general Jonathan Chai said they concurred with MEF’s assertion that employers could better handle employees’ training and development.
“The SBF is in tandem with the views and proposals of the MEF to halt the mandatory monthly contribution from employers and employees for training and development, in view of alleged mismanagement and misconduct of HRDF, an agency under the Ministry of Human Resources.
“We share the views of the executive director of MEF Datuk Shamsuddin Bardan that workers’ training and development would be more efficient if it is handled by the employers and not HRDF,” he said in a statement here yesterday.
To ensure that the money is put to good use, Chai said the government could ask employers to show proof or the Ministry of Human Resources could even conduct a random audit that the one per cent of employees’ contribution had been properly utilised for training.
“The contribution to HRDF should be totally utilised for training of employees, but the fund is now alleged to have been used to purchase buildings which involved huge sum of money.
“The allegations, if proved correct, would imply that HRDF has deviated and derailed from its original objective of spearheading the training of workers and the development of human resources in this country,” he pointed out.
He said the SBF appealed to the government and the relevant authorities to conduct a thorough investigation into the allegations reported in the media.
He added that this should help clear the doubts on mishandling of funds and uphold transparency and accountability in the operation of the agency.
On Wednesday, Shamsuddin said the controversy involving HRDF showed the fund during that time did not uphold its “core business” of spearheading workers’ development and training.
He made the comment after being asked in Kuala Lumpur to respond to a news report on the alleged mismanagement and misconduct in HRDF.
Of late, a national daily reported the alleged abuse of power and mismanagement of funds in HRDF over its purchase of a property in Bangsar South four years ago.
Such deal was purportedly done without the knowledge of its board members and investment panel.
HRDF reportedly spent RM154 million inclusive of goods and services tax ( GST) for the property.
It was also alleged of paying some RM40 million even before the issuance of the tax invoice.
The daily, quoting unnamed sources, claimed that HRDF’s board of directors had approved the acquisition of another property, also located in Bangsar South, for RM141 million before GST.